🔹 Adj. EPS: $0.11 (Est. -$0.03) 🟢
🔹 Operating Rev: $6.9B (Est. $6.92B) 🟡; +1.1% YoY
🔹 Passenger Rev: $6.3B (Est. $6.28B) 🟢; +1.0% YoY
🔹 Free Cash Flow: $2.37B (Est. $2.21B) 🟢
Guidance (4Q25)
🔹 Capacity (ASMs): +6% YoY
🔹 RASM: +1% to +3% YoY
🔹 CASM-X: +1.5% to +2.5% YoY
🔹 Fuel: $2.20–$2.30/gal
🔹 FY EBIT (ex-items): $600M–$800M
Operational Performance
🔹 Net Income: $54M; vs. Loss YoY
🔹 Operating Expenses: $6.9B; UP +1.2% YoY
🔹 RASM: +0.4% YoY on capacity +0.8% YoY
🔹 CASM-X: +2.5% YoY; better than expected
🔹 Fuel Cost: $2.40/gal (in line with guidance)
🔹 Fleet: 802 aircraft (8 new 737-8s delivered, 16 retired)
🔹 Capacity: +0.8% YoY; FY25 expected +1.5% YoY
Strategic & Product Updates
🔸 Launched assigned and extra legroom seating (for flights starting Jan 27, 2026).
🔸 Announced free Wi-Fi for Rapid Rewards members (sponsored by T-Mobile).
🔸 Expanded OTA distribution (partnered with Priceline).
🔸 Introduced Getaways by Southwest™ vacation booking product.
🔸 Announced EVA Air partnership to connect North America–Asia routes.
🔸 Planning new services in Knoxville, St. Maarten, Santa Rosa, and Anchorage.
🔸 Over 400 aircraft retrofitted for extra legroom seating.
CEO Commentary (Bob Jordan)
🔸 “We delivered a profitable quarter, with both unit revenues and unit costs performing better than anticipated.”
🔸 “We reaffirm FY EBIT guidance and expect meaningful margin expansion in Q4.”
🔸 “We’re executing the most significant transformation in our history—focused on new products, customer experience, and cost discipline.”
